Roeker Company provides information systems consultation services to large companies in the Chicagoland area. Due to a dip in the economy, Roeker has increased the percentage of credit sales which it believes will be uncollectible from 3.0% to 3.2% for 2013. Roeker's consulting services provided revenues of $700,000 in 2013. During 2014, Roeker has write-offs of $750 related to goods purchased in 2013. Prior to the write-off for the $750 default, Roeker's accounts receivable and allowance for doubtful accounts balances were $480,000 and $232 (credit), respectively.

Required:

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1. Prepare the journal entry to record the defaulted account.

2. Prepare the adjusting entry to record the bad debt expense for 2013.